Financial anxiety and depression is REAL! I know this because I go through it every so often. I admitted to you all that my financial self -discipline is not top tier. But I am on the journey to better my road map to my money. What does that mean?
That means get my finances in order and reflect on financial goals or things that matter to me. It means I need to buckle down on impulse spending and make changes to my budgets.
Doing this journey will alleviate some financial stress and allow me to heal from a financial circle and build generational wealth. The end goal is to get to enough money so I can stake care of my needs and spoil myself, while not feeling guilty about it. Or sad that I can’t afford to do anything because I am living paycheck to paycheck.
And if you are in the same boat with me then this blog is for you. Happy Reading :)
First and foremost we need to know where we are with money. Figure out where our money is going.
Pause* I would like to add that if your income is lower than the total of your monthly bills, you need to download my budget management bundle to better manage your money. I understand finding a better paying job is not always the first go-to.
Purchase your bundle bundle here -> Budget Bundle
Resume* With finding where our money is going, we find out if we are being careful with it. What can we cut out to save a little?
Categorize your spending by creating a list of what is a flexible expense and what is a variable expense. What bills are the same monthly and you know you will spend such and such amount on it? What bills vary monthly so you need to estimate how much will be spent there.
Create a subscription list as well, you find out what subscriptions you can unsubscribe from.
Once you eliminate the places your money is going that you don’t need it to go, you should be able to breathe better.
Next you want to check your credit score along with your debts.
Organize what you owe and how much you as well as how much you can pitch in monthly until you don’t owe anymore. This is a big one for me since I owe for my car and student loans and some credit cards. *ouch*.
Turning on automatic payments on certain accounts help take the money out automatically so you never miss a month and worry about a missed payment effecting your credit score.
The goal is to save for retirement right? Perhaps even retire early. Be sure to invest in life insurance. So your funeral debts don’t fall in the hands of your family.
A simple tip I learned was the 50/20/20/10 rule. 50% of your income goes into your needs and bills. 20% go into your wants - the spoiling part. Another 20% goes into a savings account, and the last 10% go into clearing debt.
So how is money management a form of self care?
Keep reading :)
For starters as stated before you’ll know where you stand with money. But aside from that you get to spend it without a guilty mind. You can spoil yourself without wondering if you have enough for the next bill.
Another reason: you become confident to make money decisions. You aren’t worried about paying only 75% of the car note so you can buy food with the other 25%. You feel empowered when you see your debt decreasing and your savings increasing.
It’s something about gaining a sense of pride that you get to live the life you created for yourself.
And on the plus side that future self won’t have to be stressed and depressed.
You made it to the end of my road map to money blog. By now I hope you have learned a few tips and tricks for budgeting.
It won’t be easy to get on track, and it won't happen after one paycheck but keep improving your money mindset. Watch your money grow and your anxiety go.